Reverse Mortgage Changes 2017 – What You Need To Know.

January 5, 2017     4 comments

ALERT: Oct. 2017 HUD to Lower Benefits/Raise Costs Under President Trump-Sec. Carson 2017! Does that sound as odd to you as it does to me?  Seems like it was only yesterday that HUD finally lifted the county by county limits on the HECM program and we went to a national limit of $417,000 that was raised just a year later to $625,500 and just stayed there but that was actually 2008/2009. Just last week when we were worrying about the Y2K bug, when all the computers were supposed to go haywire... Read Full Article

Reverse Mortgages Explained: What It Is & How it Works.

December 7, 2016     no comments

What is a Reverse Mortgage & How Does It Work? Over the past several years there have been a number of television commercials with spokesmen pitching reverse mortgages. However, it is still not a term that is very well understood by most people for a very good reason. Mortgages come from lenders and are what people use to purchase homes, not earn money. However, the reverse mortgage is a unique arrangement that allows people who own their homes to actually acquire money while using their property as collateral. In... Read Full Article

Higher Reverse Mortgage Lending Limits Coming in 2017

December 5, 2016     2 comments

Higher Reverse Mortgage Limits Coming in 2017 Starting in 2017, lending limits for government-backed reverse mortgages will increase, allowing borrowers the opportunity to access more of their home equity than ever before. The vast majority of reverse mortgages are federally-insured Home Equity Conversion Mortgages (HECMs) that are backed by the Federal Housing Administration. These loans allow homeowners age 62 and older to convert a portion of their home equity into loan proceeds that can be used to supplement retirement spending. On December 1, 2016, the FHA announced... Read Full Article

2017 Reverse Mortgage Limit Increased to $636,150

December 2, 2016     no comments

FHA Increases HECM Loan Limit The maximum claim amount for FHA-insured Home Equity Conversion Mortgage (Reverse Mortgage) will increase from its current $625,500 limit to $636,150 in 2017, according to Mortgagee Letter 2016-19 published today by the Department of Housing and Urban Development. This new MCA – which is equal to 150 percent of the Freddie Mac national conforming limit of $424,100 – becomes effective for case numbers assigned on or after January 1, 2017 and will last through December 31, 2017. The $636,150 limit also applies to the Freddie... Read Full Article

Reverse Mortgage Condo Changes Allow for Spot/Single Unit Approval

November 1, 2016     8 comments

ALERT: HUD Announces Condo Changes Effective October 15, 2019! UPDATE: 9/3/2017 It is our unfortunate duty to inform all owners of condominium units located in projects that are not currently HUD approved that HUD released a statement today that HUD has decided not to alter the condo approval requirements/process at this time.  There had been so many rumblings of new rules to come and with this announcement, HUD has stated that the current process will remain in effect for the time being with no changes at this time... Read Full Article

Hurricane Alert – 5 Tips if You Have a Reverse Mortgage

October 7, 2016     9 comments

HECMs and Hurricanes As Floridians and East Coast residents brace for Hurricane Matthew, the strongest system to threaten the United States since Katrina in 2005, we asked two knowledgeable servicers for advice that you can share with your clients if their homes are damaged. Ryan LaRose, President and COO of Lansing, MI-based Celink, and Co-Chairman of NRMLA’s Servicing Committee, and Leslie Flynne, COO of Reverse Mortgage Servicing at Reverse Mortgage Solutions, offer these tips: Contact your insurance company right away to file a claim if damage has occurred to your... Read Full Article

Financial Assessment Update Takes Effect October 3, 2016

September 26, 2016     no comments

Reverse Mortgage Financial Assessment Update Purpose The intent of this article is to announce upcoming updates to the HECM Financial Assessment and Property Charge Guide guidelines. Implementation These changes are effective for case numbers assigned on or after October 3, 2016.   New Requirements  SECTION NO. SUBJECT REVISED REQUIREMENT 2.14 Payment History on Housing Obligations Requirements apply only to the borrower's principal residence.  There is no requirement to collect a 12 month payment history for rental property payments, only that the payments must be current. 2.21 Delinquent Federal Non-Tax Debt Reverse... Read Full Article

Getting a Reverse Mortgage Online -vs- in Person

August 19, 2016     no comments

Making the decision to apply for a reverse mortgage is a large decision in and of itself, but once you do decide you’re ready, you will have a choice to make whether you want to work with a loan officer over the phone or in person. You can complete a reverse mortgage in person with a local loan officer or you can work with someone who may actually be states away. There are some things to consider about each option. But keep in mind, each state has their own licensing... Read Full Article

How Will Brexit Impact Reverse Mortgages?

August 17, 2016     no comments

As you have heard by now, Brexit happened. The United Kingdom voted in referendum in June to leave the European Union. Though nothing catastrophic has happened as a result, there will likely be some slow changes taking place across the real estate landscape in the U.S. in the coming years, especially when it comes to the housing market. Since the talk of a Brexit possibility began, financial experts have been speculating as to how it might impact the U.S. housing market. A trickle-down effect could have some bearing on reverse... Read Full Article

How Does a Reverse Mortgage Really Work?

June 12, 2016     no comments

Teresa has sent the following question(s) in the ask experts blog. Hi, how does the reverse mortgage really work? I have been trying to understand it, do I receive the money that is reversed? I pay $ 441.70 for my mortgage and I'm on social security and only make under $760.00 a month and the payments goes to USDA Rural Development and I would like to know how would that work? And how old do you suppose to be? Like to know how this all works? Hi Teresa, ... Read Full Article